7 CFR §3555.151 — Eligibility requirements

usda-7cfr-3555-151

7 CFR §3555.151 sets the borrower/applicant eligibility requirements for the USDA SFHGLP.

Get this register: .xlsx .csv More bundles →

source:
  type: regulation
  id: usda-7cfr-3555.151
  authority: 7 CFR §3555.151 — Eligibility requirements
  description: |
    7 CFR §3555.151 sets the borrower/applicant eligibility requirements
    for the USDA SFHGLP.
obligations:
  - id: usda-7cfr-3555.151-a-moderate-income-limit-at-approval
    canonical_id: usda-7cfr-3555.151-a-moderate-income-limit-at-approval
    section: 7 CFR §3555.151(a) — Adjusted annual income within moderate income limit at approval
    description: |
      At the time of USDA SFHGLP loan approval, [LENDER] must verify that
      the household's adjusted income does not exceed the applicable
      moderate income limit. [LENDER] is responsible for documenting the
      household's income to determine eligibility for the SFHGLP.
    type: do
    audit_question: For every USDA SFHGLP loan [LENDER] approves, can [LENDER] evidence (i) documented household adjusted-annual income, and (ii) that the income does not exceed the §3555.151(a) applicable moderate-income limit as of the approval date?
    program_review: Do the P&Ps ensure the household's adjusted income is documented and verified at or below the applicable moderate-income limit as of the approval date?
    file_review: Pull a sample; confirm documented adjusted-annual income and that it did not exceed the §3555.151(a) limit at approval. The officer judges whether the income documentation supports the calculated figure.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - income-limit
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(a)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (a) Income eligibility. At the time of loan approval, the household 's adjusted income must not exceed the applicable moderate income limit. The lender is responsible for documenting the household 's income to determine eligibility for the SFHGLP .
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the full §3555.151(a) operative
        paragraph.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
  - id: usda-7cfr-3555.151-b-citizenship-status
    canonical_id: usda-7cfr-3555.151-b-citizenship-status
    section: 7 CFR §3555.151(b) — U.S. citizen / non-citizen national / qualified alien status
    description: |
      For every USDA SFHGLP loan, [LENDER] must obtain Agency-acceptable
      evidence that the applicants' status is United States citizens, U.S.
      non-citizen nationals, or qualified aliens, as defined in §3555.10.
    type: do
    audit_question: For every USDA SFHGLP applicant, does the loan file contain Agency-acceptable evidence of citizenship, U.S. non-citizen national, or qualified-alien status as defined in §3555.10?
    program_review: Does the program require Agency-acceptable evidence that every applicant is a U.S. citizen, U.S. non-citizen national, or qualified alien per §3555.10?
    file_review: Pull a sample; confirm the file contains Agency-acceptable citizenship/qualified-alien evidence for each applicant.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - citizenship
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(b)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (b) Citizenship status. Applicants must provide evidence acceptable to the Agency of their status as United States citizens, U.S. non-citizen nationals, or qualified aliens, as defined in § 3555.10 .
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the full §3555.151(b) operative
        paragraph.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
  - id: usda-7cfr-3555.151-c-principal-residence-occupancy
    canonical_id: usda-7cfr-3555.151-c-principal-residence-occupancy
    section: 7 CFR §3555.151(c) — Applicants must occupy as principal residence; no investment / short-term housing
    description: |
      For every USDA SFHGLP loan, [LENDER] must confirm that applicants
      agree and have the ability to occupy the dwelling as their principal
      residence; the Agency may require evidence of this ability. Rural
      Development will not guarantee loans for investment properties, or
      temporary, short-term housing.
    type: do
    audit_question: For every USDA SFHGLP loan [LENDER] originates, can [LENDER] evidence (i) applicant agreement to occupy the dwelling as principal residence, (ii) ability-to-occupy evidence if the Agency required it, and (iii) that the loan does not finance an investment property or temporary/short-term housing?
    program_review: Does the program account for the occupancy test and its exclusions — applicant agreement and ability to occupy as principal residence, ability-evidence when the Agency requires it, and no guarantee of investment or temporary/short-term housing?
    file_review: Pull a sample; confirm applicant occupancy agreement, any required ability-to-occupy evidence, and that the loan is not on an investment or short-term-housing property.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - principal-residence
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(c)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (c) Principal residence. Applicants must agree and have the ability to occupy the dwelling as their principal residence . The Agency may require evidence of this ability. Rural Development will not guarantee loans for investment properties, or temporary, short-term housing.
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the full §3555.151(c) operative
        paragraph.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
  - id: usda-7cfr-3555.151-h-repayment-ability-29-41-ratios
    canonical_id: usda-7cfr-3555.151-h-repayment-ability-29-41-ratios
    section: 7 CFR §3555.151(h) — Adequate repayment ability with 29% PITI / 41% total-debt ratios
    description: |
      For every USDA SFHGLP applicant, [LENDER] must demonstrate adequate
      repayment ability and maintain documentation supporting the
      repayment-ability analysis in the loan file. An applicant is
      considered to have adequate repayment ability when monthly PITI plus
      HOA dues, the monthly calculation of the annual fee (as applicable),
      and other real estate assessments do not exceed 29 percent of the
      applicant's repayment income, and monthly PITI plus recurring monthly
      debts (total debt) do not exceed 41 percent of the applicant's
      repayment income. The repayment ratio may exceed these percentages
      when certain compensating factors exist per §3555.151(h)(2).
    type: do
    audit_question: For every USDA SFHGLP loan [LENDER] approves, can [LENDER] evidence (i) documented repayment-ability analysis in the file, (ii) PITI ratio at or below 29% of repayment income, and (iii) total-debt ratio at or below 41% — or, where exceeded, the §3555.151(h)(2) compensating factors supporting the variance?
    program_review: Do the P&Ps require a documented repayment-ability analysis in the file, with PITI at or below 29% and total debt at or below 41% of repayment income — and account for the §3555.151(h)(2) compensating-factor path when a ratio is exceeded?
    file_review: Pull a sample; confirm the documented analysis, the two ratios (or the (h)(2) compensating factors where exceeded). The officer judges whether the repayment-ability documentation and any compensating factors are sufficient.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - repayment-ability
      - dti
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(h)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (h) Repayment ability. Applicants must demonstrate adequate repayment ability. Lenders must maintain documentation supporting the repayment ability analysis in the loan file. Refer to § 3555.152(a) for further information.
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the §3555.151(h) operative headline;
        the 29%/41% ratio sub-rules at (h)(1)(i) and compensating-factor
        provisions at (h)(2) are paraphrased in description.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
  - id: usda-7cfr-3555.151-i5-no-outstanding-federal-judgment
    canonical_id: usda-7cfr-3555.151-i5-no-outstanding-federal-judgment
    section: 7 CFR §3555.151(i)(5) — No outstanding federal judgment or delinquent non-tax federal debt
    description: |
      [LENDER] shall not approve a USDA SFHGLP applicant who has an
      outstanding Federal judgment (other than a judgment obtained in the
      United States Tax Court) or a delinquent non-tax Federal debt that
      has not been paid in full or otherwise satisfied.
    type: dont
    audit_question: For every USDA SFHGLP loan [LENDER] approves, can [LENDER] evidence the absence of outstanding non-Tax-Court federal judgments and delinquent non-tax federal debt against the applicant — or evidence that any such debt was paid in full / otherwise satisfied prior to approval?
    program_review: Does the program account for the §3555.151(i)(5) bar — no approval where the applicant has an outstanding federal judgment (other than U.S. Tax Court) or delinquent non-tax federal debt unless paid in full or otherwise satisfied?
    file_review: Spot-check approved files (CAIVRS/credit/judgment evidence); confirm absence of disqualifying federal judgments/debt or evidence it was satisfied before approval.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - federal-judgment
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(i)(5)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (5) In all cases, the applicant cannot have an outstanding Federal judgment, other than a judgment obtained in the United States Tax Court , or a delinquent non-tax Federal debt that has not been paid in full or otherwise satisfied.
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the full §3555.151(i)(5) operative
        paragraph.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
  - id: usda-7cfr-3555.151-j-unable-to-obtain-traditional-conventional-credit
    canonical_id: usda-7cfr-3555.151-j-unable-to-obtain-traditional-conventional-credit
    section: 7 CFR §3555.151(j) — Applicant must be unable to obtain traditional conventional mortgage credit
    description: |
      For every USDA SFHGLP loan, [LENDER] must determine that the
      applicant is unable to obtain traditional conventional mortgage
      credit, as defined by the Agency, for the subject loan.
    type: do
    audit_question: For every USDA SFHGLP loan [LENDER] approves, can [LENDER] evidence its §3555.151(j) determination that the applicant is unable to obtain traditional conventional mortgage credit, as defined by the Agency, for the subject loan?
    program_review: Does the program require and document the §3555.151(j) determination that the applicant is unable to obtain traditional conventional mortgage credit, as defined by the Agency, for the subject loan?
    file_review: Pull a sample; confirm the file documents the inability-to-obtain-conventional-credit determination. The officer judges whether the basis for the determination is adequate.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: default_servicing_analyst
    cadence: per-usda-loan-origination
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - usda
      - origination
      - unable-conventional-credit
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.151(j)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.151
      snapshot_id: 146c850b506d97b8
      fetched_at: '2026-05-22T18:52:49Z'
      content_hash: sha256:51e9e09a9567889dfa55d72d6f6958b3810690cab13fb2e493cbc3047b8ef6a0
      paragraph_quote: (j) Obtaining credit. The applicant must be unable to obtain traditional conventional mortgage credit, as defined by the Agency , for the subject loan.
      drafter_attestation: |
        Copied verbatim from snapshot 146c850b506d97b8 (content.txt) at
        2026-05-22T19:42Z. Substring is the full §3555.151(j) operative
        paragraph.
    promoted_at: '2026-05-22T19:10:20+00:00'
    promoted_from: usda-7cfr-3555.151-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-22T19:10:20+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\usda-7cfr-3555.151-roundb-v1.yaml
    candidates_promoted: 6
    candidates_skipped_existing: 0

Verbatim regulatory text (6)

Verbatim provisions from 7 CFR §3555.151 — Eligibility requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

7 CFR §3555.151(a) — Adjusted annual income within moderate income limit at approval

(a) Income eligibility. At the time of loan approval, the household 's adjusted income must not exceed the applicable moderate income limit. The lender is responsible for documenting the household 's income to determine eligibility for the SFHGLP .

Source: 7 CFR §3555.151(a) · source URL · snapshot 146c850b506d97b8

7 CFR §3555.151(b) — U.S. citizen / non-citizen national / qualified alien status

(b) Citizenship status. Applicants must provide evidence acceptable to the Agency of their status as United States citizens, U.S. non-citizen nationals, or qualified aliens, as defined in § 3555.10 .

Source: 7 CFR §3555.151(b) · source URL · snapshot 146c850b506d97b8

7 CFR §3555.151(c) — Applicants must occupy as principal residence; no investment / short-term housing

(c) Principal residence. Applicants must agree and have the ability to occupy the dwelling as their principal residence . The Agency may require evidence of this ability. Rural Development will not guarantee loans for investment properties, or temporary, short-term housing.

Source: 7 CFR §3555.151(c) · source URL · snapshot 146c850b506d97b8

7 CFR §3555.151(h) — Adequate repayment ability with 29% PITI / 41% total-debt ratios

(h) Repayment ability. Applicants must demonstrate adequate repayment ability. Lenders must maintain documentation supporting the repayment ability analysis in the loan file. Refer to § 3555.152(a) for further information.

Source: 7 CFR §3555.151(h) · source URL · snapshot 146c850b506d97b8

7 CFR §3555.151(i)(5) — No outstanding federal judgment or delinquent non-tax federal debt

(5) In all cases, the applicant cannot have an outstanding Federal judgment, other than a judgment obtained in the United States Tax Court , or a delinquent non-tax Federal debt that has not been paid in full or otherwise satisfied.

Source: 7 CFR §3555.151(i)(5) · source URL · snapshot 146c850b506d97b8

7 CFR §3555.151(j) — Applicant must be unable to obtain traditional conventional mortgage credit

(j) Obtaining credit. The applicant must be unable to obtain traditional conventional mortgage credit, as defined by the Agency , for the subject loan.

Source: 7 CFR §3555.151(j) · source URL · snapshot 146c850b506d97b8